Investing.com — Gold prices fell Thursday despite dollar weakness ahead of Friday’s key jobs report, which will likely influence the Federal Reserve’s interest rate decision next week.
fell 0.7% to $2,630.53 per ounce, while February expiration fell 0.1% to $2,653.64 per ounce at 1:58 PM ET (6:58 PM GMT),
Gold sees limited safe-haven demand as risky assets rise
The yellow metal saw limited safe-haven demand this week even as the French government collapsed, while calls grew for the ouster of South Korean President Yoon Suk-Yeol after he unsuccessfully tried to impose martial law in the country to lay.
Risk-driven assets have largely wiped out political turmoil. While local markets in France and South Korea weakened, broader markets largely advanced this week, with Wall Street indexes hitting record highs overnight on strong tech stocks.
Other precious metals were lower on Thursday. fell 1% to $944.15 per ounce, while it fell 0.9% to $31.642 per ounce.
In industrial metals, the benchmark on the London Metal Exchange fell 0.1% to $9,095.00 per tonne, while February fell 0.1% to $4.1973 per pound.
The dollar falls as softer data increases interest rate cuts; payrolls awaited
The drop Thursday after data showed it reached a six-week high supported bets that the Fed is likely to cut rates again later this month.
The data arrived just a day before the main data, which was due on Friday.
The payroll data will likely play a role in expectations for future rate cuts, at a time when Fed members are warning about how deep the rate-cutting cycle is likely to be.
Speaking at a New York Times (NYSE:) event, Powell said the strong economy allows the Fed to take a more cautious approach to future easing.
While he did not downplay expectations for a rate cut in December, Powell’s comments did raise some caution about a slower pace of rate cuts in 2025.
